Tax ramifications of deed in lieu of foreclosure

Hi Tasha!

Welcome to forums!

Your query has been replied to in the given page: http://www.mortgagefit.com/know-how/about53059.html . Take a look at it. I hope it will help you.

Sussane

Hi my husband did a loan modification on his home and they sent paper work out for him to sign the loan amount went up 20,000 more on the loan then the house is worth I wanted to know if it is best that he do a deed of leu because the payment didn't go down but 40 dollars difference and just start renting again and later purchase a home in my name since the home is in his name

hi anita,

a deed in lieu of foreclosure is a good option to get rid of the property. you won't be liable for paying off the deficient balance resulting from the sale of the property. however, it will lower your scores by 250 points.

thanks

see subject

Hi Joan,

Contact a tax adviser and he will assist you in this matter.

Thanks